Which of the following is not true for SAFTA (South Asian Free Trade Area)?

It is a step towards a South Asian customs union and common market.
The agreement came into effect in 2006.
The SAFTA is a trade liberalisation regime.
The SAFTA agreement takes precedence over any other agreement a member country may have with states outside SAFTA.

The correct answer is D.

SAFTA is a trade liberalization regime that came into effect in 2006. It is a step towards a South Asian customs union and common market. The agreement does not take precedence over any other agreement a member country may have with states outside SAFTA.

Here is a brief explanation of each option:

  • Option A: SAFTA is a step towards a South Asian customs union and common market. This is true. The agreement aims to promote trade and economic cooperation among the member countries, and to eventually create a South Asian customs union and common market.
  • Option B: The agreement came into effect in 2006. This is true. The agreement was signed in 2004 and came into effect in 2006.
  • Option C: The SAFTA is a trade liberalisation regime. This is true. The agreement aims to reduce tariffs and other barriers to trade among the member countries.
  • Option D: The SAFTA agreement takes precedence over any other agreement a member country may have with states outside SAFTA. This is not true. The agreement does not take precedence over any other agreement a member country may have with states outside SAFTA.
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